When the US sneezes, the whole world catches the cold. It is of course true because the US is the most powerful country in both politic and economy.
The current financial crisis is a clear example. The US banking system and corporations are facing unstable situations; public spending is down. Economic transactions between the US and the world are less. As the result, the world export to the US decreases.
The main focus here is whether Cambodia is among the cold catchers. It is hard to deny that Cambodia is still healthy while others have already been affected.
Some predictions, including the IMF and World Bank, say the country's garment sector, which depends heavily on the US market, will affect by the US consumer saving. But this is somehow not really true. Americans at this financial crisis period try to cut their spending on luxurious commodities. The General Motor example of being bankruptcy is a sign that cars are not American choices anymore. Cambodian garment, on the other hand, is not that luxurious to be blacklisted from the Americans' basic needs.
Cambodia tourism will remain stable despite the hit from the crisis and conflict. South Koreans or other Asian tourists, not the Americans, are the main visitors to the kingdom. It remains cheap to visit Cambodia for Asian tourists. The recent negotiation between the government and Channel News Asia TV to advertise Cambodia "Kingdom of wonders" is the right strategy. The new visa exemption agreement with Vietnam will not only boost tourism within the two nations but also ease foreign tourists travelling across borders. However, Cambodia "Kingdom of wonders" needs to be aware of tourism competitions among Asian nations such as "Truly Asia" Malaysia and "Incredible" India.
Agriculture still depends on weather as usual. There has been a prediction that the weather this year is not on farmers' side. If it is true, it is a sign for donors including the World Food Programme and ADB, to provide more food aid. The good news is that Cambodia will export rice to Senegal for the first time. Africa will be a good market for Cambodian crops since the continent requires fewer standards. To export sustainably to Africa, Cambodia needs to avoid what Africa is facing now especially drought. The country desperately needs irrigation system to pump out its plenty water resource to farmers' fields.
Cambodia more or less will catch the cold, the external factor. But the country's internal efforts from the government will surely cure the disease.
The current financial crisis is a clear example. The US banking system and corporations are facing unstable situations; public spending is down. Economic transactions between the US and the world are less. As the result, the world export to the US decreases.
The main focus here is whether Cambodia is among the cold catchers. It is hard to deny that Cambodia is still healthy while others have already been affected.
Some predictions, including the IMF and World Bank, say the country's garment sector, which depends heavily on the US market, will affect by the US consumer saving. But this is somehow not really true. Americans at this financial crisis period try to cut their spending on luxurious commodities. The General Motor example of being bankruptcy is a sign that cars are not American choices anymore. Cambodian garment, on the other hand, is not that luxurious to be blacklisted from the Americans' basic needs.
Cambodia tourism will remain stable despite the hit from the crisis and conflict. South Koreans or other Asian tourists, not the Americans, are the main visitors to the kingdom. It remains cheap to visit Cambodia for Asian tourists. The recent negotiation between the government and Channel News Asia TV to advertise Cambodia "Kingdom of wonders" is the right strategy. The new visa exemption agreement with Vietnam will not only boost tourism within the two nations but also ease foreign tourists travelling across borders. However, Cambodia "Kingdom of wonders" needs to be aware of tourism competitions among Asian nations such as "Truly Asia" Malaysia and "Incredible" India.
Agriculture still depends on weather as usual. There has been a prediction that the weather this year is not on farmers' side. If it is true, it is a sign for donors including the World Food Programme and ADB, to provide more food aid. The good news is that Cambodia will export rice to Senegal for the first time. Africa will be a good market for Cambodian crops since the continent requires fewer standards. To export sustainably to Africa, Cambodia needs to avoid what Africa is facing now especially drought. The country desperately needs irrigation system to pump out its plenty water resource to farmers' fields.
Cambodia more or less will catch the cold, the external factor. But the country's internal efforts from the government will surely cure the disease.
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